You are a CPA, and have performed an audit for a company. You have discovered $400,000,000.00 (four hundred million dollars) in a 'slush fund.' This fund is 30 years old, and was carefully created by a company employee who died 20 years ago. The fund has remained forgotten in the records; it is clearly and obviously embezzled, or stolen funds from the company. However, the employee was brilliant; you discover the following reasons for the four hundred million dollars:

- The company already declared a portion of this income as a loss due to theft;

- Some of the income is from the employee's amazing negotiating ability, and is the result of sales well beyond fair market value of the goods sold. (Even with this massive income, the company still has a taxable 'loss'--which was correctly claimed on previous tax returns. The employee 'under-reported the loss' for these sales.

- Some of the income is from the employee's choices in investing the proceeds, and has appreciated in worth over 30 years.

In other words, this is as close to a victimless crime as possible, for all that it is theft.

No other person knows about this money, or will know about this money. You have also discovered exactly how to withdraw these funds with almost no chance of being caught.

You have 4 children; each of your children has contracted an highly contagious plague which is causing them extreme pain and suffering, and will likely continue to do so for the remainder of their brief lives. Pain management alone will likely run in the millions; curing the plague is very possible, but will also be massively expensive.

Please address the following in your essay:

(A) Within the Preamble, which of the Principles would apply to this fact pattern to prevent you from taking the money you have just discovered? Why, and what would each principle require you to do?

University of LaVerne College of Business and Public Management ACCT 543 Accounting Ethics and Professional Responsibility Final Fall 2016. DO NOT speak with each other about your answers. DO NOT copy off of each others' work. Similarity will be flagged and submitted to the Dean. The final is being uploaded to Blackboard on 10/28/16; it is due November. 4Th, by 6pm. Bring the hard copy to class, or e-mail it to jeffbalsz@gmail.com. Every day the final is late will be a reduction of 10% of the grade. Part 1. The following questions rely upon fact pattern 1. They are designed to demonstrate your ability to understand and apply philosophical and theoretical principles of ethics. Part of your task as a professional will be to convincingly demonstrate your understanding of ethical principles, and convincingly defend your actions using these principles. I hope to be convinced of your understanding. (1) You are a CPA, and have performed an audit for a company. You have discovered $400,000,000.00 (four hundred million dollars) in a 'slush fund.' This fund is 30 years old, and was carefully created by a company employee who died 20 years ago. The fund has remained forgotten in the records; it is clearly and obviously embezzled, or stolen funds from the company. However, the employee was brilliant; you discover the following reasons for the four hundred million dollars: - The company already declared a portion of this income as a loss due to theft; - Some of the income is from the employee's amazing negotiating ability, and is the result of sales well beyond fair market value of the goods sold. (Even with this massive income, the company still has a taxable 'loss'--which was correctly claimed on previous tax returns. The employee 'underreported the loss' for these sales. - Some of the income is from the employee's choices in investing the proceeds, and has appreciated in worth over 30 years. In other words, this is as close to a victimless crime as possible, for all that it is theft. No other person knows about this money, or will know about this money. You have also discovered exactly how to withdraw these funds with almost no chance of being caught. You have 4 children; each of your children has contracted an highly contagious plague which is causing them extreme pain and suffering, and will likely continue to do so for the remainder of their brief lives. Pain management alone will likely run in the millions; curing the plague is very possible, but will also be massively expensive. Please address the following in your essay: (A) Within the Preamble, which of the Principles would apply to this fact pattern to prevent you from taking the money you have just discovered? Why, and what would each principle require you to do? (15 points) For each of the following Schools of Ethics, please explain what each instructs you to do with regards to your children, with regards to the company, with regards to yourself, and with regards to the public.. (B) Explain Deontological ethics. Please apply Deontological Ethics to the fact pattern, as completely and thoroughly as needed, in order to answer the question of whether you should take the money or not. (6 points) (c) Explain Teleological Ethics. Please apply Teleological Ethics to the fact pattern, as completely and thoroughly as needed, in order to answer the question of whether you should take the money or not. (6 points) (D) Social Contract theory. Please apply Social Contract theory to the fact pattern, as completely and thoroughly as needed, in order to answer the question of whether you should take the money or not. (6 points) (E) Explain Virtue Ethics. Please apply Virtue Ethics to the fat pattern, as completely and thoroughly as needed, in order to answer the question of whether you should take the money or not. (6 points) PART 2. (2) For each of the 4 schools of ethics above, give ONE example of an action that would be allowed by one school, but disallowed by any other school. (Ex: Social Contract theory would allow someone to commit an act of evil if it were not illegal, while Deontological reasoning would preclude the act of evil regardless of its legality.) Explain WHY for each of the four examples you give. (8 points) (3) Explain the \"Fraud Triangle\" as discussed in the text, and give an example of it. (4 points) (4) Choose any one example of technical fraud we covered in class--either in the text, or any of the famous cases we dealt with. Explain what the technical violation was for that case, cite the specific rules of ethics which were violated, and choose one school of ethics which would have prevented the fraud from being performed. (10 points) (5) Which rule of the AICPA would you use to determine whether an advertisement for your private practice was acceptable or not